Keybanc Raises FIGS to Outperform Status, Signaling Bullish Shift

Wall Street delivered a positive signal for FIGS on February 27, 2026, when Keybanc elevated its rating on the NYSE-listed apparel company. The upgrade from Sector Weight to Overweight marks a notable shift in analyst sentiment, suggesting growing confidence in FIGS’ near-term performance despite mixed price target consensus.

Analyst Price Targets Paint Mixed Picture for FIGS

The consensus 12-month price target for FIGS stands at $10.01 per share as of February 26, 2026, reflecting significant downside risk of 19.72% from the latest closing price of $12.47. Forecasts reveal considerable analyst disagreement, with targets ranging from a cautious $6.26 to an optimistic $15.75. The disparity highlights divided opinion on FIGS’ valuation trajectory.

On the positive side, FIGS’ financial outlook appears solid. Projected annual revenue is expected to reach $798 million, representing robust growth of 26.38% year-over-year. The company’s projected non-GAAP EPS of 0.46 demonstrates improving operational efficiency, though analysts remain cautious on near-term valuation.

Institutional Backing for FIGS Shows Layered Dynamics

Fund sentiment toward FIGS reflects a nuanced investor landscape. Currently, 336 funds and institutions hold positions in the company, though this represents a decline of 41 institutional owners (10.88%) compared to the prior quarter. The weighted average portfolio allocation across all funds tracking FIGS is 0.11%, up 2.82%, suggesting increased conviction among existing holders despite fewer institutions holding stakes.

A notable headwind emerged in total institutional share counts: holdings decreased by 5.78% to 172.2 million shares over the past three months. This redemption pattern conflicts with the Keybanc upgrade, indicating that while some institutions are raising conviction, others are reducing exposure. The put/call ratio of 0.03 tilts bullish, suggesting options traders anticipate upside pressure.

Major Fund Movements Reveal Divergent Strategies

Large institutional holders are sending mixed signals on FIGS. Bamco maintains the dominant position with 59.96 million shares (38.38% ownership), and notably increased its stake by 0.04% quarter-over-quarter. The firm further boosted its portfolio weighting in FIGS by 73.57%, demonstrating strong conviction behind the position.

Growth-focused funds show stability. Baron Growth Fund (BGRFX) holds 12.37 million shares (7.92% ownership) with no change last quarter, while Baron Focused Growth Fund (BFGFX) maintains 8.49 million shares (5.44% ownership) also unchanged.

Ameriprise Financial presents a contrasting picture, slashing its FIGS holdings from 12.66 million to 6.50 million shares—a dramatic 94.68% reduction. The firm cut its FIGS portfolio weighting by 14.20%, signaling reduced confidence despite Keybanc’s upgrade.

Divisadero Street Capital Management displayed aggressive accumulation, surging from 35,000 to 4.41 million shares, representing a 99.22% increase. This firm expanded its FIGS allocation by an extraordinary 23,143.51%, suggesting high-conviction entry into the position.

What This Means for FIGS Going Forward

The Keybanc upgrade provides a counterweight to institutional pessimism, yet institutional share counts declining suggest profit-taking or hedging strategies remain in effect. FIGS sits at an inflection point—the 26.38% revenue growth trajectory offers compelling fundamentals, but consensus price targets imply modest returns or near-term pullback risk. The divergent fund moves (major additions by Bamco and Divisadero Street versus Ameriprise’s exit) highlight the contentious market view on FIGS’ valuation at current levels.